JDR.AX
Jadar Resources Ltd
Price:  
0.05 
AUD
Volume:  
4,088,870.00
Australia | Metals & Mining
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JDR.AX WACC - Weighted Average Cost of Capital

The WACC of Jadar Resources Ltd (JDR.AX) is 8.4%.

The Cost of Equity of Jadar Resources Ltd (JDR.AX) is 13.30%.
The Cost of Debt of Jadar Resources Ltd (JDR.AX) is 5.00%.

Range Selected
Cost of equity 9.90% - 16.70% 13.30%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 10.1% 8.4%
WACC

JDR.AX WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 4.7% 5.7%
Adjusted beta 1.32 2.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 16.70%
Tax rate 30.00% 30.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 10.1%
Selected WACC 8.4%

JDR.AX's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for JDR.AX:

cost_of_equity (13.30%) = risk_free_rate (3.95%) + equity_risk_premium (5.20%) * adjusted_beta (1.32) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.